"The recent funding and tender for the 2016 was really aimed
at eliminating any important maturities for us between now and
2017," Sergio Rial, the chief executive, said.
"I’m glad to report that we have been able to
accomplish that. We have no important maturities in this
period, which I think is good."

Marfrig is aiming to cut its leverage, and so it does not
plan to offer new debt, Rial said. The firm reported net debt
of 6.7 billion reais ($2.9 billion) at the end of the third
quarter, with an average cost of 7.8%.

"Our approach would be to continue to monitor the market to
seize any opportunity to reignite our liability management
process," he said. The company would want its spreads to
compress further before considering a new liability management
exercise.

"We’re trading, relative to some peers, 300
basis points higher. At this point in time there should be no
fundamental reason for that. That will be a function of us
continuing to present better results," says Rial.

Marfrig reported a net loss, stripped of foreign exchange
variations and the cost of transferred debt, of 92.5 million
reais in the third quarter, although net revenues at the group
rose 15% year on year to 4.9 billion reias.
LF

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